Select Medical (SEM) investor relations material

Executive summary

• Revenue for Q2 2025 rose 4.5% year-over-year to $1,339.6 million; net income from continuing operations increased 53.8% to $57.9 million.

• Adjusted EBITDA for Q2 2025 was $125.4 million, up 0.5% year-over-year; EPS from continuing operations increased 88% to $0.32.

• Completed tax-free distribution of Concentra in late 2024; Concentra results now excluded from continuing operations.

• Declared a $0.0625 per share cash dividend, with share repurchases totaling $96.5 million in the first half of 2025.

• Operations spanned 104 critical illness recovery hospitals, 36 rehabilitation hospitals, and 1,919 outpatient clinics across 40 states and D.C.

Financial highlights

• Six-month revenue was $2,692.8 million, up 3.4% year-over-year; net income from continuing operations rose 33.7% to $132.6 million.

• Adjusted EBITDA for the first half of 2025 was $276.9 million (10.3% margin), down from $290.5 million (11.2% margin) year-over-year.

• Q2 2025 income from continuing operations before other income/expense increased 17.2% to $86.5 million year-over-year.

• Net cash provided by operating activities for the first half of 2025 was $106.8 million, down from $211.5 million year-over-year.

• Operating expenses increased to $1,219.8 million for the quarter (91.1% of revenue), mainly due to higher labor costs.

Outlook and guidance

• 2025 revenue expected between $5.3 billion and $5.5 billion; Adjusted EBITDA between $510 million and $530 million; EPS projected at $1.09 to $1.19.

• Capital expenditures projected at $180–$200 million for 2025.

• Management expects continued pressure from labor costs and inflation, with operations financed through internal cash flows and credit facilities.

• Regulatory changes, including the One Big Beautiful Bill Act and Medicare reimbursement updates, may impact future results, but effects are not yet estimable.